There is a story about Warren Buffett finding a penny on an elevator. He was riding the elevator up to his office with several executives. On the floor was a shiny penny, but no one seemed to take notice. But, when Buffett reached his floor, and the elevator doors opened, he reached down to pick …
The Power of Compounding versus the High Cost of Waiting Read More »
A company’s return on equity is the key to building long-term shareholder value. But how do you know a high ROE is not just a flash in the pan, masking underlying problems with the company’s fundamentals? Several years ago, we came to the realization that owning and managing a portfolio of carefully selected stocks offers …
A Company’s Return on Equity is Key to Long-Term Stock Performance – But is it Reliable? Read More »
As states continue their gradual reopening, the economy is thus far demonstrating its resiliency, at least with respect to the job market. While there are signs that the economic freefall may be leveling out, we still can’t know how quickly it will recover to pre-pandemic levels. The COVID virus is still lingering, and we don’t …
The Building Blocks of Safely Valuing Stocks in Today’s Stock Market Read More »
The myth about retirement income generation is that it relies primarily on the value of your assets throughout retirement – i.e., If asset values decline, so too will your income and your ability to outlive your assets. But that’s not the case if you own the right investments. Unquestionably, this has been an unnerving time …
What Retirement Investors Get Wrong About Income Planning Read More »
Warren Buffett recently admitted that buying huge stakes in the airlines was a big mistake – 30 years after making a similar mistake with an airline. Those two wrongs certainly don’t make a right. However, his decision to bail on his stakes, as devastating as his losses were, was absolutely the right decision. When the …
Some of the best investment decisions an investment manager can make is choosing not to buy a particular stock. Those decisions probably do more to improve long-term performance than any investment decision we make. As I indicated in my last blog post, I’ve made hundreds, maybe even thousands of decisions over my 25 years as …
When Decisions Not to Buy Can be as Profitable as Decisions to Buy Read More »